Independent Electricity System Operator
Encyclopedia
The Independent Electricity System Operator (IESO) is a Crown corporation responsible for operating the electricity market
and directing the operation of the bulk electrical system in the province of Ontario
, Canada
. It is one of eight Independent System Operators in North America
.
The IESO was established in April 1999 as the Independent Electricity Market Operator (IMO) under the provincial government of premier Mike Harris
in preparation for deregulation
of the province's electrical supply and transmission system. As part of government plans to privatize the assets of Ontario Hydro
, the utility was split into 5 separate Crown corporations with the IMO responsible for directing the flow of electricity across the high-voltage, province-wide network owned by Hydro One
and other transmission companies. It was also given the responsibility of managing and operating the competitive wholesale electricity market and working with neighbouring jurisdictions to manage an integrated North American electricity network.
The IMO was renamed to the IESO in January 2005 as a result of the passage of Bill 100, which redefined the direction of deregulation and also led to the creation of the Ontario Power Authority
.
The IESO is an independent, not-for-profit entity. It is governed by a board whose directors are appointed by the government of Ontario, its fees and licences are set by the Ontario Energy Board
and, most importantly, it operates independently of all participants in the electricity market.
Electricity market
In economic terms, electricity is a commodity capable of being bought, sold and traded. An electricity market is a system for effecting purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use...
and directing the operation of the bulk electrical system in the province of Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. It is one of eight Independent System Operators in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
.
The IESO was established in April 1999 as the Independent Electricity Market Operator (IMO) under the provincial government of premier Mike Harris
Mike Harris
Michael Deane "Mike" Harris was the 22nd Premier of Ontario from June 26, 1995 to April 15, 2002. He is most noted for the "Common Sense Revolution", his Progressive Conservative government's program of deficit reduction in combination with lower taxes and cuts to government...
in preparation for deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
of the province's electrical supply and transmission system. As part of government plans to privatize the assets of Ontario Hydro
Ontario Hydro
Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara...
, the utility was split into 5 separate Crown corporations with the IMO responsible for directing the flow of electricity across the high-voltage, province-wide network owned by Hydro One
Hydro One
Hydro One Incorporated delivers electricity across the Canadian province of Ontario. It is a Corporation established under the Business Corporations Act with a single shareholder, the Government of Ontario....
and other transmission companies. It was also given the responsibility of managing and operating the competitive wholesale electricity market and working with neighbouring jurisdictions to manage an integrated North American electricity network.
The IMO was renamed to the IESO in January 2005 as a result of the passage of Bill 100, which redefined the direction of deregulation and also led to the creation of the Ontario Power Authority
Ontario Power Authority
The Ontario Power Authority is an independent, non-profit corporation established through the Electricity Restructuring Act, 2004...
.
The IESO is an independent, not-for-profit entity. It is governed by a board whose directors are appointed by the government of Ontario, its fees and licences are set by the Ontario Energy Board
Ontario Energy Board
The Ontario Energy Board regulates natural gas and electricity utilities in the province of Ontario, Canada. This includes setting rates, and licensing all participants in the electricity sector including the Independent Electricity System Operator , generators, transmitters, distributors,...
and, most importantly, it operates independently of all participants in the electricity market.